Last update: 10:56 | 15/02/2017
The Transport Ministry has affirmed that Vietnam has not banned Uber but the company must work with ministries and agencies to complete business registration.
The ministry made the affirmation during a working session in Hanoi on February 14 with Uber Vietnam following the ministry’s decision to reject the ride sharing firm’s request to pilot an IT upgrade for its services.
The project Uber has sought approval for is titled “Application of information technology in supporting the management and connection of commercial passenger transportation by contract”, which aims to enhance State management of information technology-based passenger transportation, and aid future science and technology application projects in the transportation sector.
To receive approval, Uber Vietnam needs to satisfy the ministry’s conditions such as the rights and responsibilities as a supplier of technological applications and transportation services, technological application and settling complaints by passengers.
An Uber Vietnam representative vowed to hold a working session with the Hanoi municipal Transport Department soon to discuss its activities in the capital city.
Deputy Transport Minister Nguyen Hong Truong said the registered fields of operation in Uber Vietnam’s initial business certification are “managerial activities” and “market research”, with no relation to any action authorised by its parent firm Uber International Holding BV (Uber BV) based in the Netherlands.
The authorisation given to Uber Vietnam by Uber BV, which provides the smartphone application for Uber services, is inappropriate, he said, adding that if Uber Vietnam is the developer of the IT component and wants to apply it, it has to add this activity to its list of registered operations, he said.
Uber entered Vietnam in June 2014 as a foreign company operating in the country without resident offices. The company has been under Government scrutiny for tax avoidance and its legality.